MORTGAGE LOANS
S/N
DISCLOSURE REQUIREMENT
This includes the name, address and day-time
contact details of the borrower.
1
Name and address of creditor
Description of the property
financed
This should describe location and other features of
property being financed by the bank.
2
3
4
Itemization of amount
financed
This gives a breakdown of the item(s) being
financed.
This is the interest rate which will be charged by
the bank on the amount disbursed.
Annual percentage rate (APR)
This should clearly state the possibility of increase
in rates in line with money market conditions. It
should also outline the bank’s responsibilities in the
event of a movement in rates, including the
means and timing of its notification to the
customer.
5
Variable rate information
The bank should also disclose with details, all
necessary repayment information including the
monthly, quarterly or other repayment sums as
was agreed with the borrower.
6
7
Payment schedule
Prepayment Terms
This includes all information the borrower needs to
know during the consummation of the facility,
such as the customer’s rights (and penalties) in the
event of his decision to pay off the facility before
its expiration, etc.
This should detail all penalties that will be suffered
by the borrower in the event of default.
8
Late payment policy
Collateral
Usually, the security for the loan is the property
being financed.
9
Insurance requirements
(where applicable)
The bank is expected to disclose the nature of
insurance policy required for the facility.
10
This includes all information the borrower needs to
know before the consummation of the facility,
which includes information such as the bank’s
11
Repayment terms
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